return icon

VN electronics industry put at disadvantage due to falling demand

The Vietnamese electronics industry is anticipated to continue being hit by the challenges brought about by the increasingly complicated hurdles caused by the COVID-19 epidemic during the second half of the year, 

with demand for products within markets in Europe and the United States set to be reduced.

According to a report released by the Ministry of Industry and Trade (MoIT) on industrial and commercial production, the production index of electronics and computers during the last six months underwent a surge of 9.8% over the same period from last year, coming in higher than the increased level recorded during the same period last year at 3.5%.

Despite facing plenty of difficulties when attempting to import components from China at the beginning of the year, the reasonable balance of production and business activities has led to the local electronics industry enjoying strong growth in terms of industrial production index and export turnover throughout the reviewed period.

electronics industry put at disadvantage due to falling demand hinh 0

The electronics industry is forecast to continue being hit by the impact of   the novel coronavirus (COVID-19) epidemic in the second half of the year (Photo:CafeF)



Most notably, the first half of the year saw the export value of computers, electronic products and components increase by 24.2% to US$19.28 billion, whilst mobile phones and accessories witnessed a fall of 8.4% to US$21.5 billion.

With positive indicators of growth in production and exports, the MoIT continues to foresee a difficult situation for the domestic electronics industry ahead in the second half of the year as a result of the downturn caused by the global COVID-19 pandemic situation which will reduce the demand for electronic products in the US and European markets.

This can be seen as Samsung's global sales and output are forecast to endure a decline as a result of the general impact of the epidemic on the electronics industry as a whole. Indeed, Samsung Vietnam is also set to scale down its export target for the year to approximately US$45.5 billion in comparison with the 2019 level of US$51.38 billion.

The MoIT believes that the nation’s handling of the virus is greatly appreciated by the international community, acting as important motivation to attract greater foreign investment into the country post-COVID-19.

Elsewhere, transnational groups are considering making moves to shift their investments, presenting a great opportunity for the nation to attract this impending wave of capital. This also shows that major technology conglomerates remain poised to move their production chains to the nation, as can be seen by LG moving its entire production line from the Republic of Korea to Hai Phong.

According to Nikkei, the second quarter of the year will see Apple produce up to four million AirPods locally, equivalent to roughly one thirds of the total AirPods produced worldwide. Foxcon, a component supplier for Apple, has located its factory in Bac Giang whilst Panasonic Vietnam is also preparing to gradually move its production line from Thailand in order to produce refrigerators and washing machines at the beginning of September.

Enacting these activities is expected to serve as a driving force for the electronics industry to enjoy stronger growth in the near future. VOV


Vietnam’s most modern library

Located at National Economics University, the most modern library in Vietnam covers around 10,000 square metres and is funded by the World Bank through the Support for Autonomous Higher Education Project.

China purchases more Vietnamese fruit for lunar new year holiday

Chinese demand for fruit for the lunar new year holiday accounts for up to 50 percent of Vietnam’s total fruit exports. Experts warn that the products may get stuck at border gates.

Press agencies need to become technological institutions: minister

Twenty years ago, editors-in-chief took pride in the fact that while printing machines were working, distributors were sitting eating bread and waiting for the first newspapers to be put out to deliver.


Vietnamese innovative startups should strive to become regional, international “unicorns”: PM

Seven more prosecuted in bribery case at foreign ministry

The investigation agency under the Ministry of Public Security has issued decisions to prosecute, arrest and search the residences and workplaces of seven more individuals for their involvement in a bribery case at the Ministry of Foreign Affairs.


President arrives in Seoul, beginning state visit to RoK

IFC plans to pour 320 million USD into three Vietnamese banks

The International Finance Corporation (IFC), a member of the World Bank Group, has proposed a total investment of 320 million USD in three Vietnamese banks, reported the Nikkei Asia.

Girl with brittle bone disease opens class for poor students

As she wasn't able to fulfil her dream of becoming a teacher due to congenital vitreous disease, Nguyen Thi Ngoc Tam opened a free class for poor students.

Miniature-human sculptures popular with customers

The price of a sculpture ranges from one to five million VND, depending on the difficulty of the model. Eight to 19 ordered products are made per day to guarantee progress as well as the quality of the sculpture for the customer.

Lacquer village outlasts centuries-old craft

Alongside a wide range of products made from natural materials such as wood, bamboo and rattan, the village also has created new gold- and silver-inlaid products made from ceramic, pottery, and composite.

Local firms do business in P2P lending market

P2P Lending has become a hot issue in Vietnam, especially with the participation of Chinese businesses.

Vietnam to hold first cat fish festival soon

Vietnam’s first cat fish festival is scheduled to take place in the southern province of Dong Thap on December 16-17.

Control of bad content on social networks should be tightened

Tik Toker No O No, who criticized the poor, was boycotted by the community and forced to shut down by the authorities. He is not the first Tik Toker that has posted bad content on social networks.

Businesses struggle to keep workers as exports slow

Businesses have been struggling to maintain and support their workers as the Lunar New Year approaches.

Only in Vietnam: Shrimp-chip straws, dragon-fruit noodles

VietNamNet sums up the “odd news” in Vietnam last week.